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Bord Gáis is latest to cut energy tariffs as prices fall

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Dual-fuel customers of Bord Gáis can save €82 a year. Stock image

Dual-fuel customers of Bord Gáis can save €82 a year. Stock image

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Dual-fuel customers of Bord Gáis can save €82 a year. Stock image

A third energy supplier has cut its prices.

Bord Gáis Energy is to lower its tariffs from the start of May, putting pressure on the rest of the providers to reduce their costs.

Electricity prices are to fall by 4.5pc, and gas by 6.5pc from May 1.

This will save an average electricity user €37 a year, and €43 for a gas customer.

Dual-fuel customers of Bord Gáis will save €82 a year.

The company, which is owned by Britain's Centrica, said it was the second time it had reduced its prices in the last six months.

Electric Ireland and PrepayPower have also announced small cuts.

Energy experts said the reductions mean consumers are benefiting from what was called a long-overdue price war. But there was also disappointment that the cuts were not larger.

This is because wholesale energy prices have fallen by 50pc in the past few months.

Demand for energy is down sharply due to the coronavirus reducing demand in China.

Wholesale gas prices in January were down 52pc when compared with the same month last year.

Daragh Cassidy of product comparison site Bonkers.ie said: "For the past 15 months or so we've seen energy prices falling on wholesale markets so these decreases are long overdue. However, from mid-2018 until early 2019 we saw cumulative price increases of around 20pc to 30pc from all the major suppliers, so more decreases can be expected by consumers."

State-owned Electric Ireland is cutting its residential electricity prices by 2.5pc from April 1, and its gas prices by 11.5pc.

This will save the average electricity customer around €22 a year, while the average gas customer will save around €78 on their annual bill.

Furthermore, 200,000 electricity and gas customers of PrepayPower are to benefit as it is reducing its unit rate for electricity by 2.5pc from April 1, and its gas price will fall by 11.5pc.

The changes will result in an average dual-fuel customer saving €97 a year.

Irish Independent